• Insurance Agents, Get Top-Flight Annuity Leads!

State Farm Files Lawsuit to Prevent Commissioner Imposed Rollback


Insurance Agent Blog  

State Farm says the rate increases are needed to cover the additional risk of wildfires.

 

California Insurance Commissioner Dave Jones has ordered more than $100 million in refunds for nearly 2 million State Farm policy owners. The move by Jones is to rectify alleged excessive rates charged by State Farm to its homeowners and renters insurance policy holders. State Farm is fighting back by challenging commissioner Jones’ authority to order said refund. This is the first refund of its kind approved since California’s landmark Proposition 103 rolled back insurance rates nearly three decades ago. This would be a significant win for consumer groups.

 

State Farm argues the mandated reductions were based on inaccurate calculations. “We do not believe the commissioner’s decision is lawful, and are therefore taking the necessary legal steps to challenge the rate reduction, [and] rate refund,” State Farm spokesman Sevag Sarkissian said in an email to the LA Times.

 

The ruling is scheduled to take effect this month, and would apply to 1.7 million State Farm customers who had homeowners, condominium and renters insurance since July 2015, according to Consumer Watchdog, the Santa Monica advocacy group that filed the initial challenge to State Farm’s proposed rate increases.

 

State Farm says its proposed 6.9% increase was needed to cover the additional risk of wildfires, arguing that losses from fires were on the rise.

Check Availability in Your Area

1 2
Can't read? Reload
Please fill the above code for verification.
1 2


Thank You

Recent Posts